India’s increasing involvement with East Asia in various sectors like technology, trade, and soft power presents new prospects for Mongolia’s economy. A recent report highlighted the alignment of the two countries’ economic strategies and emphasized the non-bloc approach they share.
During his East Asia tour, External Affairs Minister S Jaishankar visited Mongolia, showcasing the deepening strategic partnership between the nations. The visit underscored the focus on enhancing economic ties and strengthening connectivity between Eurasia and the Indo-Pacific region.
EAM Jaishankar’s official visit to Mongolia on June 22-23 was part of a 10-year strategic roadmap established in 2025 during Mongolian President Khurelsukh Ukhnaa’s State Visit to New Delhi. Describing Mongolia and India as “strategic partners” and “spiritual siblings,” Jaishankar emphasized the close bond between the two nations.
The strategic priorities of Prime Minister Narendra Modi’s government, ranging from connectivity to defence partnerships and cultural diplomacy, align closely with Mongolia’s development goals. India’s role as a key third-neighbour partner is reinforced by this alignment, enhancing bilateral cooperation.
EAM Jaishankar’s tour of the Mongol Oil Refinery project in Dornogovi Province on June 22 showcased India’s significant investment in Mongolia’s energy sector. The refinery, financed under a USD 1.7 billion line of credit, is poised to become a major foreign investment project in Mongolia, contributing to the country’s economic diversification.
India’s interest in Mongolia’s coking coal industry as a potential export destination was also highlighted during the visit. With a focus on economic engagement, both countries are exploring opportunities for Mongolia to export mining products to India, particularly coal for technological and industrial needs.
India and Mongolia have not only deepened economic ties but also leveraged soft power through cultural diplomacy and educational cooperation. This emphasis on shared heritage and mutual cooperation has strengthened the bilateral relationship between the two nations.
The recent visit by EAM Jaishankar was deemed crucial by the Foreign Ministry of Mongolia for enhancing the ‘Strategic Partnership’ between the countries. It is expected that India’s role as a significant partner in Mongolia’s quest for investment from third neighbours will further solidify their cooperation.
